Shinhan Bank, the second largest bank in South Korea by assets, announced that it entered into a contract with KT, South Korea's largest wired and wireless telecommunications provider, in order to create a new platform based on the blockchain technology.
The new platform will have to launch digital vouchers that will replace cash in certain areas. Also, local governments expect to introduce digital vouchers to revitalize and stimulate the local economy in South Korea.
According to the contract, KT will develop the blockchain platform itself, while Shinhan Bank will draw up appropriate financial solutions for the new platform, such as payment and account systems, etc.
Shinhan Bank representative Jang Hyeon-ki commented:
"Shinhan’s strategic partnership with KT is a part of our efforts to introduce a convergence between finance and ICT. The blockchain technology will upgrade customers’ financial activities to a new level."
Having recognized the possibilities of the blockchain technology, Shinhan Bank created a research blockchain center under its Digital Strategy Department. Currently, the bank is engaged in developing an integrated certification system for various financial transactions, such as online banking and currency exchange.
KT company, in turn, deals with the blockchain technologies as well. A month ago, the company launched a commercial network based on blockchain that can handle 2,500 transactions per second (TPS), by the end of the year the speed will reach 10,000 TPS and by the end of 2019 – 100,000 TPS.